This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Syria Oil Industry Buckling Under Rebel Gains

By BASSEM MROUE

BEIRUT (AP) â¿¿ Syria's vital oil industry is breaking down as rebels capture many of the country's oil fields, with wells aflame and looters scooping up crude, depriving the government of much needed cash and fuel for its war machine against the uprising.

Exports have ground practically to a standstill, and the regime of President Bashar Assad has been forced to import refined fuel supplies to keep up with demand amid shortages and rising prices. In a sign of the increasing desperation, the oil minister met last week with Chinese and Russian officials to discuss exploring for gas and oil in the Mediterranean off Syria's coast.

Before the uprising against Assad's regime began in early 2011, the oil sector was a pillar of Syria's economy, with the country producing about 380,000 barrels a day and exports â¿¿ mostly to Europe â¿¿ bringing in more than $3 billion in 2010. Oil revenues provided around a quarter of the funds for the government budget.

But production now is likely about half that, estimates Syrian economist Samir Seifan, given the rebels' gains. The government has not released recent production figures.

Since late 2012, rebels have been seizing fields in the eastern province of Deir el-Zour, one of two main centers of oil production. Most recently, they captured the Jbeysa oil field, one of the country's largest, after three days of fighting in February.

At the same time, overburdened government troops have had to withdraw from parts of the other main oil center â¿¿ the northeastern Kurdish-majority region of Hassakeh, where they have handed control of the oil fields to the pro-government militia of the Kurdish Democratic Union Party, or PYD. Production from some of those fields still goes to the Syrian government, but the fields are more vulnerable to theft and smuggling.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs